Who should I see to get a home mortgage loan?

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My daughter is getting ready to buy a home from a family member. The family lawyer will handle the actual transaction. She needs to get a loan for the mortgage.
Should she talk to her bank (Wachovia) or a mortgage company? Which is cheaper as far as their fees? Who could give her the best interest rate considering how the sale will be handled?

there is no real estate agency or agent involved. She only needs to borrow $ 50,000.

the only thing I know is she needs to go ahead and get pre-approved now so she can be ready to buy as soon as the final price of the house is set.

HELP, Please????
To Kayleigh: Well, we do know this much. It will be a fixed rate loan for between 15 and 30 years. The shorter the better.

I just ran my husband’s credit report and noticed that six different accounts appear for his Stafford Loan for graduate school. The loans are all through the same bank – Wachovia. Each semester they take out these loans so therefore it looks like he gets a new student loan every 6/7 months. First, can we correct this? Second, why are there six different accounts? Third, will this affect his credit score and therefore our chances of a lower interest rate on a home mortgage? Any information would be very helpful – I don’t even know where to begin.

  1. Reply
    Dale H
    January 26, 2011 at 2:09 pm

    You can get a gift of equity on the purchase of a home from a family member so be sure to specify that to the loan officer. This will help your daughter to qualify a lower loan to value and perhaps not have to provide any down payment. Make the purchase price $ 62,500. With a $ 12,500 gift of equity she would have a 50K loan at 80% loan to value so she would not need PMI.

    I used to work for Wachovia and there is nothing wrong with using them, but there may be better options from other lenders available.

    Check with http://providentfunding.com. I used to use them for wholesale fixed rate programs and found they have some of the best pricing in the country.

    We have a low cost purchase in our market for $ 500 + recording ($ 100) at 6.625% on a 30 Year fixed rate. Check with your local banks to see if they have similar offers. I even have a 40K loan I am closing next week.

    Some lenders have minimum loan amounts or will charge higher costs on smaller loans because they are trying to gross a certain amount so watch out for that.

    Best of luck with your search.

  2. Reply
    Beverly S
    January 26, 2011 at 2:39 pm

    Hi, I am one of your contacts & just happened to be looking at my contacts questions. I work as a mortgage lender (for last 22 years). Please do NOT go with anyone on Y/A who calls you “dear”. Know what I mean?? They are the desperate lenders who will rip you off!. Don’t go to Wachovia- have you heard todays news about them? Someone on here mentioned a gift of equity- good idea. FHA has really good programs, no loan limits- low fixed rates. You can go to http://www.fha.gov – there is a place to key in your zip code to find an FHA lender approved in your area. Call them for free pre-approval. If a lender is FHA approved you are assured that they have been looked at HARD by the government. I believe it took my company approximately 6 months for approval- which was 10 years ago- it takes even longer now. I would suggest your daughter go 30 years for lower payment- then if she makes one extra principal payment per month it pays off in 15 years. She should expect to pay about 2-3% in closing costs which may include origination, flood cert, credit bureau, processing, title insurance, closing fees, doc prep, and recording of the deed or mortgage and state taxes. Also she will be required to set up escrows for homeowners insurance and property taxes. FHA normally requires 3% down but if there is built in equity of at least 15% then you can use the gift of equity program instead. I hope this helps, feel free to email me if you have any questions.

  3. Reply
    Ed Atun
    January 26, 2011 at 2:42 pm

    Go to 3 places and interview. Where she banks. a local credit union (they are lending these days), a local mortgage broker (there are some wonderful ones and a local realty broker can give you a recommendation)..

  4. Reply
    January 26, 2011 at 3:13 pm

    no prob , but hey I can I borrow a couple of hundred gran – my credit is alittle minced, is that cool…

  5. Reply
    January 26, 2011 at 4:04 pm

    This is perfectly normal each semester is treated as its own loan, because… each semester is its own loan. The only way I could think of this going away would be loan consolidation(only do this if you can consolidate to a lower interest rate). 3.) The fact that it is appearing as 6 loans doesnt matter for his score, debt is debt whether it is 1 loan or 6 (for the most part). If he is above 680 I wouldnt be to worried as you will still get a good rate. Student loans should be the least of your concerns for a variety of reasons, focus on paying off credit card debt, car loans, store cards etc… Student loans are often very low interest, very low payments, and tax deductible if he makes less than 50K. The only way this really affects a mortgage is your debt to income ration. If he has alot of student loans and then that will affect the amount you can be approved for.

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